Macquarie expects profit rise

Macquarie Group expects a substantial rise in net profit, due to improving financial market conditions.

The investment bank's chief executive, Nicholas Moore, says he expects Macquarie's net profit for the year to March 31 to be up 10 per cent from its $730 million net profit in the previous year.

It could even be higher, if improved market conditions persist, he said on Tuesday.

"Since our result announcement for the first half of the 2013 financial year, market conditions have shown some signs of improvement. However, client activity remains subdued for capital markets-facing businesses," he said in a prepared briefing for analysts.

Macquarie had previously forecast a rise in its full-year net profit, but didn't provide details.

It's $730 million profit in the 2011/12 fiscal year was down 24 per cent on the previous year, reflecting lower activity in financial markets because of global economic uncertainty.

Mr Moore on Tuesday said Macquarie's capital markets businesses continued to experience subdued conditions, but their profits were higher in the three months to December 31 than in the preceding quarter and the previous corresponding period.

Macquarie's annuity-style businesses, such as banking and financial services, continued to post growing profits, he said.

The company also had continued to cut costs, with operating expenses in the December quarter down 10 per cent on the same period in the previous year.

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